What problem is caused for you if you have a credit policy of requiring cash payment in 30 days and your competitor has a credit policy of requiring cash payment in 75 days?

• According to the FASBs accounting rules, no receivables can be reported if the cash payment period is less than 50 days.
• You will have more cash tied up in the form of accounts receivable than do your competitors.
• More attractive credit terms can allow your competitor to steal customers from you.
• According to the FASBs accounting rules, the amount of revenue you are allowed to recognize is lower if you require more rapid payment.